A BIG Confirmed LOS Acquisition

Rumors about technology acquisitions are floating around a lot these days. I hear most of them. My policy has always been not to report on a rumored acquisition until the deal has been closed. Rumors are not news, they are just rumors until something actually happens. Today I can bring you confirmation that a long rumored LOS acquisition has closed. Here’s the scoop:

PCLender, LLC has acquired the PCLender loan origination system (LOS) back from Black Knight Financial Services and formed a new company that will focus on providing turnkey mortgage technology solutions for midsized mortgage bankers. No sale price was disclosed.

PCLender, LLC has been heavily capitalized to expand the system functionality and implement automation solutions for lenders requiring increased compliance and workflow efficiencies. The system currently supports banks and credit unions with consumer point-of-sale, loan processing, automated underwriting, loan closing, integrated imaging, secondary marketing, trade management, warehouse management and interim servicing. PCLender’s retail and wholesale platform will now be expanded to support correspondent lending and include automated loan audit and post-closing review support. Additionally, an emphasis will be made to refine vendor integrations and build out fulfillment services that streamline lender operations.

Lionel Urban, president and CEO of PCLender, LLC said the management team will initially focus on strengthening customer relationships and pursue customer collaboration to speed the pace of design enhancements. “I believe the PCLender customer base has some very valuable feedback and we intend to implement that into our development road map. I think that was a strength of the organization early on and we are excited to reengage with the customer base in a collaborative manner.”

PCLender, LLC will continue to build on the scalable architecture and security that is currently inherent in the system. PCLender, LLC anticipates the development and support resources dedicated to the LOS will increase by over 60 percent in the next 12 months to support the new growth initiatives.

PCLender, LLC will focus on workflow and configuration defaults that will enable lenders to implement the LOS within 30 days using industry best practices. Mr. Urban believes that the small to midsized mortgage lenders are an underserved market and plans to offer a more robust solution that will require less administrative support by the lenders.

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MI Links Up With Servicing Platform

National MI, a private mortgage insurance (MI) company, has successfully completed a systems integration with LPS’ MSP servicing platform, a servicing technology for the mortgage industry. The integration is expected to save mortgage servicers time and money by allowing the servicer to report MI billing and disbursements, new loans, cancellations and delinquencies electronically to National MI.

LPS’ MSP servicing technology platform gives mortgage bankers the ability to automate all areas of loan servicing, including loan setup and maintenance, customer service, cashiering, escrow administration, investor accounting and default management for servicers throughout the country.

“We appreciate National MI’s trust in LPS’ best-in-class servicing technology to help optimize support for their customers’ MI servicing process,” said LPS Chief Information Officer Joe Nackashi.

Both Fannie Mae and Freddie Mac approved National MI as a qualified mortgage insurer in January 2013. National MI began writing mortgage insurance in April of this year. In late July, National MI agreed to insure an amount approximating $5 billion in residential mortgages in its first risk transfer transaction with Fannie Mae, with an effective date of September 1, 2013.

Founded in 2012, National Mortgage Insurance Corporation (National MI) is headquartered in Emeryville, California, in the San Francisco Bay Area. NMI Holdings, Inc., National MI’s parent company, raised over $500 million of capital in a private placement of its securities in April 2012. National MI has received approval from Fannie Mae and Freddie Mac as a qualified mortgage insurer, and has been approved to provide mortgage insurance in 48 states and the District of Columbia.

List Mania

*List Mania*
**By Lew Sichelman**

LewS***I don’t know about you, but I am sick and tired of all the “bests” and “worsts” and “mosts” and “leasts.” As in, the hottest housing markets, the slowest housing markets, the best college towns to buy real estate, the top ten cities for engineering innovation.

****Bert Sperling of Sperling’s Best Places once told a group of real estate reporters that he could come up with a list of the “best places” for just about anything. Thus, we have the best places to live, to retire, to work, to visit, to chill, to hyperventilate, to think, not to think, ad infinitum.

****And then we also have the fastest markets from flip to sale. I mean, gimme a break.

****Nope. No such luck. There’s the ten most exciting cities, the top ten markets in which to buy vacation homes and the 25 best places to flip.

****And then there’s the funniest cities (Ha!), the most over-valued, the most under-valued (or is that the least?), and our favorite summer towns.

****Wait, there’s more, as in the most secure largest cities, the most stressed cities, the most popular for the holidays, and the best baseball cities.

****I actually like that last one. But not the best for job growth, the worst for job growth, the healthiest – that’s fiscal health, not physical – and the ten best cities for NASCAR fans.

****Everybody, it seems, is enamored with lists. I haven’t seen the ten worst mortgage regulations yet, but I’m sure its out there – somewhere.

****And while we’re skewering this pig, how about all those indices we’re subjecting to each and every month, month after month after month. I’m tired of those, too.

****Why, everybody has one – or more. There’s Core Logic, Case-Shiller, LPS, the FHFA, the NAHB, Pro Teck, Redfin, etc., etc., etc. (This is not to single out any particular company; it’s  just to name a few. So please, everyone, don’t get your knickers in a wedgie.)

****It’s time to stop all this madness, these mindless veiled attempts to get your name up in lights. And I fault supposed news outlets which publish these lists — one after another after another, even though they hold little or no value — just as much, if not more, than their purveyors.

****Take the monthly catalogue of the housing markets with the fastest appreciation. Even the government publishes them. But they do consumers a disservice, for what’s happening in Bumdale has absolutely, positively nothing to do with what’s Bumberg.

****No, borrowers, buyers and sellers would be much better off knowing what’s going down – or up – in their communities, their neighborhoods, their very own blocks. Yet we continue to tell them that prices are up 11 percent in Bumville when what’s more meaningful is that values have slipped 2 percent on their street because it’s loaded with foreclosures or pig-pen neighbors.

****So, I, for one, say let’s stop this silliness. And the presses. Except for maybe a list of the ten worst offenders.

Measuring AVM Accuracy

*Measuring AVM Accuracy*
**New Reseller Emerges**

***Are AVMs accurate? When should you use them? New developments are making AVMs a more valuable tool each and every day. For example, Veros has added the Realtors Valuation Model (RVM) to its platform of solutions for the mortgage and investor market. RVM is the product of Realtors Property Resource, LLC (RPR), a wholly owned subsidiary of the National Association of REALTORS, and Lender Processing Services, Inc. (LPS).

****“The AVM marketplace continues to introduce high-performance models,” says David Rasmussen, Veros’ senior vice president of operations. “These models are particularly important as the most recent update to the Interagency Appraisal & Evaluation Guidelines highlighted the need for thorough testing of all valuation methods of all varieties. Utilizing multiple AVMs according to performance is an efficient and effective approach to valuation. RVM is another high-performing model to add to our impressive list of available AVMs.”

****Tricia McClung, RPR Vice President of Business Development, states, “The Realtors Valuation Model was created to assist the housing market – from REALTORS to investors – with improved analytics that enhance how properties are priced and evaluated. RVM leverages a broad array of property information, including REALTOR market data, for a comprehensive, current, and reliable valuation result.”

****Veros will market RVM to its client base as a standalone product as well as through its valuation management platforms: VeroSELECT and Sapphire.

Market Analysis: LPS Acquires Another LOS

*LPS Acquires Another LOS*
**By Tony Garritano**

***I know that you thought we might get a break from big news until at least after the holiday, but you would be wrong. Hugh Harris, President and CEO at LPS notified staff that the industry giant has acquired yet another loan origination system. LPS currently offers its Empower LOS and recently acquired Web-based LOS PCLender. Now LPS is adding to its LOS holdings yet again. Here’s the scoop:

****Harris said:

****“I am pleased to announce that LPS has recently acquired LendingSpace, a technology company that offers an end-to-end mortgage loan origination software system supporting lead generation through secondary marketing for all mortgage markets, including correspondent lending. The addition of LendingSpace enhances LPS’s position as a leading technology and services provider delivering a comprehensive suite of solutions to support the entire lending process.

****“The LendingSpace technology platform will be offered in addition to LPS’ two existing loan origination systems: Empower, which is used by mortgage lenders with complex system configuration and customization needs; and PCLender, which is used by mortgage lenders, credit unions and community banks that leverage more standardized technologies.

****“The LendingSpace platform, as well as LPS’ other origination systems, will also incorporate LPS’ Loan Quality Gateway to assist originators with their loan quality requirements.

****“The addition of LendingSpace’s robust capabilities expands the number of innovative origination solutions we can offer lenders. We evaluated a number of lending platforms and LendingSpace best provided the scalability needed to expand our product suite. More importantly, LPS and LendingSpace share a common commitment to excellence, integrity and customer dedication.”

****I guess you can never have enough LOS offerings these days. No sales price was disclosed as yet. There you have it my friends, another bit of LOS acquisition breaking news for you to chew on as you enjoy your 4th of July.